RSP Permian Inc. (RSPP), a shale oil and gas explorer backed by private-equity fund Natural Gas Partners LLC, and existing owners raised $390 million after pricing an initial public offering toward the low end of a marketed range.
The company, which explores in Texas’s Permian Basin, and shareholders sold 20 million shares at $19.50 each, after offering them for $19 to $21 apiece, according to terms for the deal obtained by Bloomberg News. The shares are expected to begin trading tomorrow on the New York Stock Exchange under the symbol RSPP.
At the IPO price, Dallas-based RSP Permian has a market value of $1.41 billion. The company plans to use the money to repay debt and provide cash payments to existing investors and employees.
NGP, founded in 1988, manages about $10.5 billion in funds that invest in oil and gas production, oil-field service and power companies, according to its website. The firm sold shares in the offering to cut its stake in RSP Permian from 45 percent to about 26 percent, according to filings.
Barclays Plc and JPMorgan Chase & Co. managed the offering.
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